Nigerian motorists may soon experience some relief at filling stations as international crude oil prices fall amid renewed diplomatic efforts to end the conflict between the United States and Iran.
Brent crude, the global benchmark, declined by 6.32 per cent to $92.11 per barrel on Monday, November 9, extending the 16 per cent fall recorded the previous week. West Texas Intermediate (WTI), the US benchmark, also dropped by 5.01 per cent to $86.28 per barrel.
According to The Guardian, the latest decline followed renewed diplomatic efforts involving Qatar, Washington and Tehran to negotiate an interim agreement that could restore normal shipping operations through the Strait of Hormuz.
Before the conflict disrupted international shipments, the strategic waterway handled approximately 20 million barrels of crude oil and petroleum products daily.
Under the reported proposal, Iran would reopen the strait and halt attacks on tankers in the Gulf, while the United States would lift its naval and economic blockade of Iran.
However, the proposed agreement has not been confirmed, as disagreements over Iran’s nuclear programme and other conditions continue to complicate the negotiations.
For Nigeria, a sustained decline in crude oil prices could reduce petrol production and procurement costs, potentially creating room for lower pump prices.
Any reduction at filling stations, however, would also depend on exchange rates, refining costs, transportation expenses and the prices paid by marketers for existing supplies.
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